S.C.D.

Amendment Paper as at
Thursday 11th March 1999

STANDING COMMITTEE D

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New Amendments handed in are marked thus *

WELFARE REFORM AND PENSIONS BILL

NOTE

The Amendments have been arranged in accordance with the Order of the Committee [2nd March], as follows:—

Clauses 1 to 5, Schedule 1, Clauses 6 to 14, Schedule 2, Clause 15, Schedule 3, Clauses 16 and 17, Schedule 4, Clauses 18 to 27, Schedule 5, Clauses 28 to 42, Schedule 6, Clauses 43 to 47, Clause 50, Clause 48, Schedule 7, Clause 49, Clause 60, Clause 58, Clauses 51 to 57, Clauses 61 to 68, Clause 71, New Clauses, New Schedules, Clause 59, Schedule 8, Clause 69, Schedule 9, Clause 70, Clause 72, Schedule 10, Clauses 73 to 75.

Clause No. 1 (Meaning of 'stakeholder pension scheme').

6

Amendment (No. 6) proposed, in page 2, line 20, at the end to add the words—

'(10) The ninth condition is that the employer shall annually provide to each member of the scheme, or shall procure that the manager or trustees of the scheme shall provide, a report setting out—

(a) the total sums paid into the scheme for the member's account,

(b) the total sums deducted from the scheme for any purpose,

(c) the current value of the sums held for the member's account, and

(d) projections based on reasonable real rates of return indicating the range of amounts likely to be available to the member on retirement in the event either of the suspension of further contributions on his behalf or of their continuance at the current level.'.—(Mr Quentin Davies.)

Question proposed, That the Amendment be made.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

10

Clause     1,     page     2,     line     20,     at end add—

    '(10) The ninth condition is that the scheme shall provide to somebody who applies to join the scheme full and accurate advice as to how a stakeholder pension would benefit the applicant compared with other types of pension and shall tell the applicant that they have up to 28 days to cancel the application without cost or penalty; and an applicant to a stakeholder pension scheme shall have up to 28 days from receiving the said advice to cancel the application without cost or penalty.'.

   

Mrs Jacqui Lait

29

Clause     1,     page     2,     line     20,     at end add—

    '(10) The ninth condition is that the trustees have power to vary the terms of the trust requirement for annuities to be purchased.'.

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Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

7

Clause     2,     page     2,     leave out lines 31 to 33.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

11

Clause     2,     page     2,     line     33,     at end insert—

    '( ) The Authority shall, before the pension scheme is registered under this section, have the power to make such investigations as are reasonable so as to establish whether the declaration under subsection 2 is true.'.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

12

Clause     2,     page     2,     line     33,     at end insert—

    '( ) The Authority may whenever they wish, after the pension scheme is registered under this section, make such investigations as are reasonable so as to establish whether those conditions are currently fulfilled.'.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

13

Clause     2,     page     3,     line     11,     leave out 'may' and insert 'shall'.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

14

Clause     2,     page     3,     line     17,     at end insert '; and such fees shall not be greater than the administrative cost of the relevant operation.'.

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Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

30

Clause     3,     page     3,     line     19,     after second 'of', insert '10 or more'.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

31

Clause     3,     page     3,     line     24,     after 'employees', insert 'or shall permit any of his employees to designate his own scheme provided that the scheme is a pension scheme approved under Part XIV of the Income and Corporation Taxes Act 1988.'.

   

Mr Quentin Davies
Mr Eric Pickles

42

Clause     3,     page     3,     line     41,     at end insert—

    '( ) An employee shall only be allowed to make a new request to change the scheme into which his contributions are to be paid once every year and the employer shall not be bound to change the level of an employee's contributions more than twice a year.'.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

32

Clause     3,     page     4,     line     7,     leave out from 'below' to 'or' in line 8 and insert '£9,000 per year, this limit to be raised annually in line with average earnings.'.

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Mr David Rendel
Mr Mark Oaten

26

Clause     4,     page     4,     line     10,     after '(1)', insert 'Subject to subsection (7) below,'.

   

Mr Stephen Timms

18

Clause     4,     page     4,     line     11,     leave out 'of relevant employees'.

   

Mr Stephen Timms

19

Clause     4,     page     4,     line     18,     leave out 'provisions' and insert 'requirements'.

   

Mr Stephen Timms

20

Clause     4,     page     4,     line     19,     leave out 'provisions' and insert 'requirements'.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

15

Clause     4,     page     4,     line     23,     at end insert—

    '(1A) Should the inspector's actions under this section cause the employer to incur costs or cause the employer to suffer loss together exceeding £100 then the employer shall be compensated by payment of the full value of loss and costs by the Authority.'.

   

Mr Stephen Timms

21

Clause     4,     page     4,     line     26,     leave out 'relevant'.

   

Mr Stephen Timms

22

Clause     4,     page     4,     leave out lines 35 to 39.

   

Mr Iain Duncan Smith
Mr Quentin Davies
Mr Eric Pickles

33

Clause     4,     page     4,     line     39,     at end insert—

    '(5A) No inspection in accordance with this section shall take place unless the employer has failed within 30 days to give satisfactory responses to written enquiries or unless there is prima facie evidence of the employer having committed an offence under this Act.'.

   

Mr Stephen Timms

23

Clause     4,     page     4,     leave out line 42.

   

Mr David Rendel
Mr Mark Oaten

27

Clause     4,     page     4,     line     42,     at end add—

    '(7) This power shall be subject to annual review by the Secretary of State'.

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Mr Stephen Timms

24

Schedule     1,     page     66,     line     15,     leave out 'this' and insert 'that'.

   

Mr Stephen Timms

25

Schedule     1,     page     66,     line     16,     at end insert—

    '(4) Any reference in this paragraph or paragraph 3 which is or includes a reference to subsection (4) or (5) of section 2 includes a reference to any enactment in Northern Ireland corresponding to that subsection.

    3.—(1) Section 99 of the 1995 Act shall have effect in relation to any occupational pension scheme which is or has been registered under section 2 as if the regulatory provisions for the purposes of subsection (1) of section 99 included sections 1 and 2(4) to (6).

    (2) Section 100 of the 1995 Act shall have effect in relation to any occupational pension scheme which is or has been registered under section 2 as if the references in subsections (1)(c)(i) and (4)(b) to that Act included references to section 2(5).'

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Mr David Rendel
Mr Mark Oaten

28

Clause     6,     page     5,     line     11,     after '(1)', insert 'Subject to an affirmative resolution of both Houses of Parliament'.

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Mr Stephen Timms

43

Clause     8,     page     8,     line     18,     at end insert—

'Obtaining information for purposes of section 111A.

111B.—(1) Any person appearing to the Regulatory Authority to be a person who holds, or is likely to hold, information which is relevant to the issue— (a) whether any provision made by or under section 111A is being, or has been, complied with by an employer or the trustees or managers of a personal pension scheme, (b) whether, in the case of any direct payment arrangements existing between an employee and his employer, there has been such a failure to pay a contribution as is mentioned in subsection (8)(b) of that section, or (c) whether an offence has been committed under subsection (11) of that section in relation to any such arrangements,     must, if required to do so by the Regulatory Authority by notice in writing, produce any document which is so relevant.     (2) To comply with subsection (1) the document must be produced in such a manner, at such a place and within such a period as may be specified in the notice.     (3) An inspector may, for the purposes of investigating any of the matters set out in subsection (1)(a) to (c), at any reasonable time enter premises liable to inspection and, while there— (a) may make such examination and inquiry as may be necessary for such purposes, (b) may require any person on the premises to produce for his inspection, or secure the production for his inspection of, any document relevant—     (i) to compliance with any provision made by or under section 111A, or with the direct payment arrangements, or     (ii) to the issue whether an offence has been committed under subsection (11) of that section in relation to those arrangements, and (c) may, as to any matter so relevant, examine, or require to be examined, either alone or in the presence of another person, any person on the premises whom he has reasonable cause to believe to be able to give information relevant to that matter.     (4) An inspector applying for admission to any premises in pursuance of subsection (3) must, if so required, produce his certificate of appointment.     (5) For the purposes of subsection (3) premises are liable to inspection if the inspector has reasonable grounds to believe that— (a) employees of the employer are employed there, (b) documents relevant to the administration of—     (i) the employer's business,     (ii) the direct payment arrangements, or     (iii) the scheme to which those arrangements relate, are kept there, or (c) either of the following is being carried out there, namely—     (i) the administration of the employer's business, the arrangements or the scheme, or     (ii) work connected with the administration of the employer's business, the arrangements or the scheme,     unless the premises are a private dwelling-house not used by, or by permission of, the occupier for the purposes of a trade or business.     (6) Section 100 of the Pensions Act 1995 (warrants) shall have effect as if references to section 98(1) or 99(1)(b) of that Act included references to subsection (1) or (3)(b).     (7) Sections 101 to 103 of that Act (penalties, savings and reports) shall have effect as if references which are or include references to section 98 or 99 of that Act included references to this section.     (8) In this section— "direct payment arrangements" has the same meaning as in section 111A; "document" includes information recorded in any form, and any reference to production of a document, in relation to information recorded otherwise than in legible form, is to producing a copy of the information in legible form; "inspector" means a person appointed by the Regulatory Authority as an inspector.".'.

Prepared 11 Mar 1999